CalHome Mortgage Assistance – First Time Buyer Program in Fresno

August 17, 2016

The City of Fresno is a participant in the First Time Homebuyer Assistance Program currently funded by the United States Department of Housing and Urban Development (HUD) and the California Department of Housing and Community Development. Resource Lenders is a qualified participating lender for the program.

The Homebuyer Assistance Program (HAP) provides down payment and mortgage assistance loans to qualified homebuyers. The purpose of the program is to enable eligible low and moderate income families to purchase their first homes.

The highlights of the loan available within this program are:

Loans up to $50,000.00

Loans due in 30 years or upon sale or transfer of title

No monthly payments

0% interest

Homes intended for purchase must meet all current health and safety standards as well as building code requirements.

The Homebuyer Assistance Program has some requirements that you or someone you know may meet providing eligibility for homeownership. The program is extraordinary for the first time home buyer understanding the parameters the loans.

Overview:

Loan amount up to 20% of the purchase price of a single family home and closing costs (minimum loan – $1,000.00)

Lower end of appraised value or purchase price on the intended residence may NOT exceed $221,000.00 for an EXISTING single family residence or $228,000.00 for a NEW CONSTRUCTION single family residence.

Only single family residences or condominiums are eligible for the program (income producing property is not eligible).

0% Interest

Buyer required to make a minimum cash investment of 1.5% of the sales price of the residence. (Source of buyer’s 1.5% investment must be documented and may be a “gift” from a blood relative).

Applicants must, upon purchase, occupy the home as their principle residence.

Applicant must be able to qualify for a fixed rate first mortgage with impounds (taxes and insurance, etc.).

Maximum total debt to income ratio is 43% (back-end); therefore, all credit and collection accounts must be current before close of escrow.

Homeowner training course is required and must be completed before loan approval.

Property being purchased must satisfy an inspection by Fresno County Affordable Housing Program.

Lien position will be 2nd or 3rd position dependent on total financing package.

Target area for program inclusion is the unincorporated areas of Fresno County and the participating cities of Fowler, Kerman, Kingsburg, Mendota, Reedley, Sanger and Selma.

Income limits exist and are subject to change annually.

The task of producing quality loans is a delicate balance between the “science” of gathering pertinent information and analyzing risk and the “art” of making valid judgments empowering the borrower with every reasonable consideration. Resource Lenders and The First Time Homebuyer Program work to maintain such a balance with quality loans that meet the borrower’s needs for home financing without imposing excessive financial burdens on the borrow or the community.

The First Time Homebuyer Program helps families achieve the American Dream of home ownership, particularly those families in the lower or moderate income brackets and Resource Lenders is proud to be a qualified participant helping make these dreams come true.